If the stock market behaves according to the efficient market hypothesis, then
a. investment in stocks cannot be profitable.
b. future changes in stock movements are completely predictable.
c. current stock prices reflect all currently available information.
d. both b and c.
e. all of the above.
Question 2
The demand for current consumption, as plotted against current income, shifts to the right due to all of the following except
A) a decrease in current taxes.
B) a decrease in future taxes.
C) an increase in current income.
D) an increase in future income.
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